Could This Foreclosure Affect You?

Last month I wrote about four recent Hawaii hotel foreclosures.  At that time it did not appear that the foreclosures would directly affect visitors.  Now I’ve learned that in fact that may not be true.

Good question from a reader.

Micc wrote a comment on the previous post and had the good sense and perhaps premonition to ask:

“It never occured to me that a property we rent might be under foreclosure. Has this been a problem in Hawaii? We want to rent a condo on the Big Island for our next trip. Should we be concerned about unknowingly renting a foreclosed upon unit?”

Well Micc, the answer is yes, there can be reason for concern.  In the case of Ilikai for example, it isn’t clear yet what might happen with privately managed condo units in the event the hotel management ceases to provide basic services.  In other words, there is question whether there would be access even to units not foreclosed upon.

Suggestion.

With any accommodation reservation, paying by credit card affords you protection in the event that which you pay for doesn’t materialize.  If you pay by check, you could easily be out whatever you’ve paid.

The Ilikai Hotel.

The vintage 1964, 1050 room hotel may be closed as soon as February 8.  According to news reports out this week, the lender has indicated to the bankruptcy court that it will stop paying for operational expenses, which would likely result in the hotel’s closure.